Brazil's Rousseff Says Petrobras Critics Distorting Facts

Posted by Eric Haun
Monday, April 14, 2014
Dilma Rousseff official portrait web

Brazilian President Dilma Rousseff on Monday lashed out at critics of Petroleo Brasileiro SA, saying accusations of corruption, cost-overruns and stagnation at the state-run oil company were politically-motivated.

"I won't tolerate any type of wrongdoing, criminal action, influence peddling or corruption of any type no matter who commits it," Rousseff said in a campaign-style speech at the launching of an oil tanker at a shipyard near Recife, Brazil.

"At the same time I won't stand by quietly when people carry out a politically-motivated, negative campaign to hurt the company's image.

Petrobras, as the company is known, is at the center of a mushrooming corruption scandal including a police raid on its headquarters and the arrest of at least one former company director.

It may also face an investigation of one of its refineries in Texas.

The company, whose $221 billion five-year investment plan is one of the world's largest corporate spending programs, is also being investigated by police and prosecutors in Brazil, the United States and Europe over more than $100 million of alleged bribes to company officials by Netherlands-based SBM Offshore NV , an oil production ship leaser.

Despite discovering huge offshore resources in recent years, Petrobras' production has stagnated and domestic fuel price controls have forced it to boost money-losing gasoline and diesel imports. Its market value has slipped from nearly $300 billion in 2008, when it was one of the world's most valuable companies, to less than $100 billion. It is also the world's most indebted and least-profitable major oil company.

The Petrobras troubles threaten to eat into support for Rousseff, who is running for re-election in October and has seen her government's approval rating slip to 36 percent from 42 percent in recent weeks.

Rousseff said critics are manipulating information about the company's performance.

"Those who say Petrobras is losing value and importance in Brazil are wrong," Rousseff said. "They manipulate data, they distort analyses, they deliberately fail to realize the reality of the world petroleum market to turn temporary market-wide problems into supposedly irreversible and definitive facts."

She argued that, rather than hurting the company, her government and that of her predecessor, Luiz Inacio Lula da Silva, have revived a company that was ignored and poorly treated by previous administrations.

Rousseff noted that Petrobras had only been worth $15 billion in 2003, when Lula took office. When she took office on Jan. 1, 2011, Petrobras was worth $229 billion.

The Brazilian leader also praised the construction of the Abreu e Lima oil refinery in the same Suape industrial complex where she gave her speech.

The 230,000 barrel-a-day refinery is expected to cost $20 billion by the time it starts operating later this year. Each new barrel of new capacity added by the refinery will cost $87,000, one of the highest ever recorded and double or triple the cost per barrel of refineries built in Latin America, the Middle East and China in recent years.

(By Jeb Blount; Additional reporting by Filipe Pontes; Editing by Paul Simao)

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

USA Urged Not to Delay Arctic Drilling

The U.S. should immediately begin a push to exploit its enormous trove of oil in the Arctic waters off of Alaska, or risk a renewed reliance on imported oil in the future, reports AP.

Feds Delay LNG’s Port Ambrose Application

The US Coast Guard and the US Maritime Administration (MARAD) have temporarily suspended their review of the proposed Port Ambrose deep-water LNG import terminal.

Austal Graduates 48 4-Yr Apprentices

Austal USA combined two classes to graduate a total of 48 members of Austal’s cutting-edge four-year apprenticeship program yesterday at a formal ceremony held at the Arthur R.

News

Gulf Bridge Express Service to End

The Gulf Bridge Express Service will shortly be terminated with the last roundtrip voyage being MV Saint Nikolaos voyage 00008S, ETA New Orleans on April 22, 2015.

Obangame Express 2015 Concludes in the Gulf of Guinea

Maritime forces from Gulf of Guinea nations, Europe, South America, and the United States and several regional and international organizations concluded the multinational maritime exercise,

Scandlines Ferry Back in Service by End June

The damaged Scandlines ferry M/V Prinsesse Benedikte is being repaired at the Polish shipyard Remontowa and is expected to be ready before the end of June 2015.

People in the News

Obangame Express 2015 Concludes in the Gulf of Guinea

Maritime forces from Gulf of Guinea nations, Europe, South America, and the United States and several regional and international organizations concluded the multinational maritime exercise,

Scandlines Ferry Back in Service by End June

The damaged Scandlines ferry M/V Prinsesse Benedikte is being repaired at the Polish shipyard Remontowa and is expected to be ready before the end of June 2015.

Greece Will Sell Piraeus Port Stake in Weeks

The Greek government will sell its majority stake in the port of Piraeus within weeks, the country's deputy prime minister told China's official Xinhua news agency,

Government Update

Obangame Express 2015 Concludes in the Gulf of Guinea

Maritime forces from Gulf of Guinea nations, Europe, South America, and the United States and several regional and international organizations concluded the multinational maritime exercise,

Greece Will Sell Piraeus Port Stake in Weeks

The Greek government will sell its majority stake in the port of Piraeus within weeks, the country's deputy prime minister told China's official Xinhua news agency,

China Maritime Silk Road to Touch India for Namesake

Chinese officials on Saturday fleshed out some details for the country's ambitious 21st Century Maritime Silk Road (MSR) project in its “one belt, one road,” action plan.

Offshore Energy

Nations Convene for Arctic Maritime Discussion

Citing an increasing need to ensure safety, security and stewardship of Arctic waters, member countries of the Arctic Council gathered at U.S. Coast Guard Headquarters

Advanced Drillships a Burden for Owners as Business Slows

Not so long ago, advanced drillships costing more than half a billion dollars each and capable of operating in ever-deeper waters practically guaranteed big profits for oil-rig operators.

Russia May Allow More Firms to Offshore Oil

Russia may allow more oil companies to access its offshore projects, Energy Minister Alexander Novak said on Friday.   "In general, the access can be extended," Novak told reporters in Moscow.

 
 
Maritime Contracts Maritime Security Navigation Pod Propulsion Port Authority Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.4343 sec (2 req/sec)